Key bank saved $500,000 by
improving their direct mailing
using data mining and data
warehouse in their Home Equity
Airline industry can forecast at
the seat level for each ﬂight to
perform “yield” management.
learn insights such as “30+ male
customers buy 6-pack beer and
disposable diaper at the same
time around 2-4 am”
Progressive Insurance can offer
usage-based insurance plan using
ESS – Executive
DSS – Decision Support
MIS – Management
TPS – Transaction
data becomes the basis of these
different levels of decision making
two different types of data-
report (using query)
What is a database?
!! Structured collection of data items
!! Types of Database Management Systems
•! The one most often seen
•! Access, MS SQL Server, Oracle, DB2
What is a Relational Database?
!! A set of two or more tables related to each other
through key fields
!! Key field
"! A field on which a table can be sorted (indexed)
!! Primary Key
"! Field which uniquely identifies a record
"! Why have a primary key?
•! There may be many people named John Smith, so how
do you tell them apart?
•! Use something which is unique, like a social security
•! Social security number is a common key field
(a.k.a. Business Intelligence)
!! Also known as Data Mining and OLAP
(Online Analytical Processing)
!! Finding non-obvious patterns in data
!! Data Mining generally implies using statistical
"! correlation analysis
"! clustering to find patterns and relationships
in large databases
!! Relational databases are optimized for efficiency
in data storage
"! OLTP – Online transaction processing
!! Dimensional databases are optimized for
efficiency in data retrieval
"! OLAP – Online analytical processing
"! MOLAP – Multidimensional OLAP
•! Stored in cubes that can be easily retrieved and
!! ROLAP – Relational OLAP
"! “Fakes” MOLAP-style aggregation using a relational
implementation: The data cube
A data cube
stores its data
in a single
That table is
This cube has
SQL (OLAP) query
•How many light bulbs did we sell in the 1st Qtr
of 2000 in California vs. NewYork?
Data mining query
•How do the buyers of light bulbs in California
and NewYork differ?
•What else do the buyers of light bulbs in
California buy along with light bulbs?
•Which sales regions had anomalous sales in the
1st Qtr of 2000?